Wolverine Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney services of $40,000. Wolverine stock has been actively trading at $20 per share. This transaction would include a:

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The transaction involves issuing 5,000 shares at a par value of $5, totaling $25,000 (5,000 shares x $5). The stock's market value is $20 per share, totaling $100,000 (5,000 shares x $20). The excess over par value is $75,000 ($100,000 - $25,000), which is credited to Paid-in Capital in Excess of Par. However, the payment for services is $40,000, so the credit to Paid-in Capital in Excess of Par is $15,000 ($40,000 - $25,000).

Wolverine Corporation Issued 5,000 Shares of Its $5 Par Value